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M1

Make-to-Stock

The collection of processes associated with producing generic products for replenishment purposes. The purpose of Make-to-Stock is to produce sufficient products to support actual and forecasted demand for a given period and achieve a planned level of inventory or no inventory.

Make-to-Stock is a supply chain configuration of the Make process that aggregates and de-aggregates demand. This generally involves P processes to determine the optimal quantities and mix to produce. Aggregation of demand implies that there is no direct link between customer orders and production orders (except at the aggregate level). A customer order cancellation may or may not result in a change in production orders.

Make-to-Stock is the Make process that facilitates the MTS Supply Chain Strategy.

Use Cases

  • High volume, low value supply chains
  • Replenishing a base product or sub assembly required by Customization Postponement*
  • Supply chains where manufacturing and distribution lead times exceed customer accepted order cycle times
  • Manufacturing facilities where products that cannot manufactured daily (color-wheels, change-over inefficiencies)
  • Products where stock-outs shall not happen (mission-critical, lost sales)
  • Manufacturing capacity requires producing ahead to support seasonality

Notes

*) Customization Postponement is a Make-To-Stock process requiring a semi-finished product in generic stock (prior to customization), typically positioned by a Make-to-Stock process. Supply Chain Costs Cost Of Goods Sold Orders Damage Free Ratio Orders Defect Free Ratio Make Cycle Time Cash Conversion Cycle Days Of Inventory Bill Of Materials Manufacturing BOM Plan-to-Product

Hierarchy

IDNameLevelx
MMake1M
M1Make-to-Stock2M1
M101Create Schedule3M101
M102Issue/Stage Materials3M102
M103Produce3M103
M104Inspect3M104
M105Package3M105
M106Dispose3M106
M107Transfer3M107

Metric(s)

IDNameLevelx
DP11Orders Damage Free Ratio2DP11
DP12Orders Defect Free Ratio2DP12
RS13Make Cycle Time2RS13
CO1Supply Chain Costs1CO1
CO11Cost of Goods Sold2CO11
AE1Cash Conversion Cycle1AE1
AE12Days of Inventory2AE12

Term(s)

IDNameClearx
BOMBill of MaterialsBOM
MTSMake-to-StockMTS
M-BOMManufacturing BOMM-BOM
P2PPlan-to-ProductP2P

Workflow

FromInput(s)
Process
Output(s)To
wf_processwf_arrow
S1Generic Stock
S1Packaging Materials
M1
wf_arrowwf_process
Generic StockD1
SubassemblyM2
SubassemblyM3
Make-to-Stock Make 310000 2 {{{keywords}}} {{{description}}}